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Industry linkage, spatial correlation, and city exports: case study of the textile and clothing export industry in China

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  • Shulin Wan

    (Dalian Maritime University)

  • Weixin Luan

    (Dalian Maritime University)

  • Qiaoqiao Lin

    (Dalian Maritime University)

Abstract

Many studies focus on economic growth in cities, but few investigate urban export growth. This paper discusses city export differences from the perspective of industry linkage and spatial correlation. The study employs a spatial simultaneous equation to investigate these issues using 2007–2016 customs data obtained from the Chinese customs database and Chinese prefecture-level city panel data. We examine three sub-industries of the textile and clothing export industry as an example: chemical fiber exports, textile exports, and clothing exports. Our findings show that the demand linkage is greater than the cost linkage within a city, the intra-industry spatial interactions across cities lead to export agglomeration, and the inter-industry spatial interactions across cities lead to export dispersion. Further, in general, promoting the development of only the downstream export industry will drive the expansion of the upstream export industry. This study provides a new explanation to better understand the spatial distribution of China’s exports, thereby offering important policy implications for stabilizing national development.

Suggested Citation

  • Shulin Wan & Weixin Luan & Qiaoqiao Lin, 2021. "Industry linkage, spatial correlation, and city exports: case study of the textile and clothing export industry in China," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 66(1), pages 91-112, February.
    • Handle: RePEc:spr:anresc:v:66:y:2021:i:1:d:10.1007_s00168-020-01011-4
    DOI: 10.1007/s00168-020-01011-4
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    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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